Mandatory contents of contracts of consultancy on banking operations in Vietnam

Mandatory contents of contracts of consultancy on banking operations in Vietnam (Internet image)

Mandatory contents of contracts of consultancy on banking operations in Vietnam

Consulting on banking operations and other business activities (hereinafter referred to as consulting) involves credit institutions carrying out one or multiple activities, including collecting, processing information, applying professional knowledge, identifying issues, assessing issues to propose solutions, and plans in accordance with the consulting scope stipulated in Article 4 of Circular 38/2024/TT-NHNN upon the client's request:

- The credit institution providing consulting services is only allowed to offer consulting services on banking operations and other business activities as specified in the License issued by the State Bank to that credit institution.

- The aforementioned solutions and plans must be implemented by the credit institution providing the consulting services or another credit institution suitable for the scope of banking operations and other business activities in accordance with the License issued by the State Bank to the credit institution.

Credit institutions providing consulting services and clients must agree on terms and commitments through a consulting contract in accordance with the law.

According to Clause 2, Article 10 of Circular 38/2024/TT-NHNN, the consulting contract on banking operations and other business activities must include at least the following contents:

- Name, address, and other contact methods (if any); legal representative or authorized representative of the credit institution providing the consulting services; name, address, and other contact methods (if any) of the organizational client; name, address, personal identification number, and other contact methods (if any) of the individual client;

- Consulting objectives and scope;

- Consulting implementation method;

- Rights and obligations of the credit institution providing the consulting services;

- Rights and obligations of the client;

- Contract duration;

- Consulting fees and payment methods;

- Dispute resolution method;

- Contract effectiveness;

- Contract tenure;

- Agreement on the responsibility for compensation of damages by the parties in case of contract breach.

Amendments and supplements to the consulting contract shall be carried out based on the agreement of the parties in accordance with Circular 38/2024/TT-NHNN and other relevant legal regulations.

Principles of consultancy by Credit Institutions in Vietnam

Article 5 of Circular 38/2024/TT-NHNN stipulates that credit institutions providing consulting services on banking operations or other business activities must ensure the adherence to the following principles:

- Comply with legal regulations and be responsible before the law for consulting activities undertaken by consulting staff and the content of the consultations.

- Be responsible for supervising the compliance with professional ethics and the performance of consulting activities by the consulting staff.

- Ensure the independence, honesty, and objectivity of the consulting activities.

- Comply with regulations on customer information confidentiality during the provision of consulting services unless otherwise agreed in writing with the customer or as prescribed by law.

- Credit institutions providing consulting services have the autonomy in their consulting activities.

- The implementation of consulting activities via electronic means must comply with legal regulations on electronic transactions.

Tran Trong Tin

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